Ohio legislators introduced Senate Bill 396 this spring, which would establish a state paid family and medical leave (PFML) insurance program. Although the bill remains in the early stages of the legislative process, it serves as a reminder that PFML requirements have become a significant compliance consideration for employers with multi-state workforces.
While Ohio does not currently require participation in a state PFML program, many other jurisdictions do. As of 2026, 14 states and the District of Columbia have enacted mandatory paid family and/or medical leave programs, with several newer programs continuing to move through implementation. Maryland's program is among the next major developments, with contributions scheduled to begin in January 2027 and benefits becoming available to eligible employees beginning in 2028. Employers should keep in mind that these requirements often apply based on where an employee performs services, meaning even a single remote employee working in a PFML state may trigger compliance obligations.
Employers sometimes assume that an existing PTO, vacation, sick leave, or parental leave program satisfies state PFML requirements. In many jurisdictions, however, state PFML programs operate separately from employer provided leave benefits and impose independent obligations relating to payroll contributions, employee notices, and administrative compliance.
Most PFML programs function more like unemployment insurance than a traditional employer leave policy. Employers, employees, or both contribute directly to the state through payroll deductions, and employees generally apply directly to the state to receive wage replacement benefits during qualifying leave periods. Many states permit employers to satisfy PFML obligations through an approved private plan rather than participation in the public program. However, employers generally cannot rely on an existing leave policy without first satisfying applicable state approval requirements. Employers that are hearing about these requirements for the first time may wish to review whether any registration, contribution, notice, or reporting obligations already apply to employees working in states with PFML mandates.
Employers should not focus solely on the state law aspects of PFML programs. Federal tax and payroll reporting obligations are becoming an increasingly important part of PFML compliance, with additional requirements expected to take effect beginning in 2027. We will address those emerging issues in a future article.
If you have any questions or would like more information on state paid family and medical leave requirements or other employee benefits compliance issues, please contact a member of Bricker Graydon Wyatt's Employee Benefits practice group
